Saturday, July 27, 2024

Volkswagen to Delay Significant Production of ID.2 Until May 2026 – Sources

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Volkswagen (VW) is reportedly planning to postpone significant production of its anticipated ID.2 electric car until May 2026, with deliveries commencing shortly thereafter, according to sources cited by German publication Auto, Motor, Sport. The ID.2, a small electric car comparable in size to the Polo, was previewed by VW in March 2023, targeting a base price of just under €25,000.

The sources indicate that although the model is scheduled to be unveiled in autumn 2025, full-scale production will not be initiated until May 2026. VW aims for the ID.2 to be its first electric vehicle offered for less than €25,000 in the basic version, aligning with the company’s commitment to affordable electric mobility. However, the targeted base price of less than €25,000 is expected to be only marginally below this threshold.

VW Board Member for Development, Kai Grünitz, emphasized the pragmatic approach taken in determining the price, factoring in clear measures, including at the battery level, to achieve the specified target. Originally envisioned to cost less than €24,000, market dynamics, including rising raw material prices and inflation, prompted adjustments.

The postponement of significant production until May 2026 could present challenges for the ID.2, especially with the emergence of competing electric models in the market earlier. The ID.2 faces competition not only from China but also from European manufacturers such as Citroën’s ë-C3 and Renault’s upcoming R5.

To further advance affordable small electric cars, VW is exploring potential collaborations, with initial talks reportedly held with Renault for the ID.1. The objective is to leverage joint development and production to optimize costs. The technology underpinning these small electric cars may draw from Twingo technology.

Simultaneously, Volkswagen is working on a new China platform derived from the Modular Electric Drive Kit (MEB) to facilitate affordable electric cars in the Chinese market. While details on the launch date and pricing remain undisclosed, reports suggest the introduction of four Chinese electric models priced between €18,000 and €22,000, set to hit the market from 2026.

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